12 Ways to Solve Your Real Estate Low Inventory Crisis | #TomFerryShow
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12 Ways to Solve Your Real Estate Low Inventory Crisis | #TomFerryShow


– Today, I’m showing you 12 different ways for you to solve the inventory crisis. (fast rock music) (guitar riffs) (cymbal crash) Hey, welcome to The Tom Ferry Show. Today, I wanna solve the inventory crisis you and others are experiencing
in your marketplace, by revealing, for the first time publicly, a survey we did, amongst our elite coaching members, heads up, this year,
they’ll 63 transactions, call it $700,000 in GCI, on about 30 million dollars in volume. I recently went to both
their business plans, which I can have access
to online, and then, looked at a survey poll
that we did on Facebook where I asked them this question. What are the sources your
listings came from in 2017? Like, where are you concentrating
your time, your energy, your marketing, your phone
calls, your knocking, your direct mail, and more, and, as we watch that list, both the first initial
seven that I posted, and they added more, we got to
12 different listing sources. Now, why am I sharing this with you? What I know is this, as I
travel around the country, and I do webinars, and I talk
to agents that are telling me, you know, Tom, my marketplace has a one month’s supply of inventory. Or, Tom, yesterday my
marketplace has a .5, a half a month’s supply of properties. They come on the market, we hit MLS, that’s our marketing
plan, six or seven offers. Now I know, someone’s watching right now and saying, but Tom I’m in the high end, and we’ve got a seven year
supply of homes on the market, in certain price ranges, I understand. Don’t you want more listings? If the answer is yes, I’m gonna
take you through this list, I’m gonna give you some
insights, you’re gonna see on my blog at tomferry.com,
some case studies. Some marketing samples that
you’re gonna wanna download, look at, R and D, rip off
and duplicate, and use these as a way to grow your listing inventory for the spring market coming
soon, and the summer markets. So, with all that together,
I want you to listen to this list, through basically,
call it two frameworks. Number one, do I do that? And number two, is that
something I’ve avoided? Now, remember fixed mindset
versus growth mindset. If you’re sitting there
watching this right now, and you’re saying to yourself, I don’t have enough inventory. I’ve got more buyers than
I’ve got properties to sell, or I want to get more
listings, because that’s just my model, we’ve got to
remove that fixed mindset, that doubt, that, you know,
one time, 15 years ago, I called that prospect,
I didn’t like it, and therefore, I don’t do it today. We have to remove that
mindset, and be open to simply serving more customers. Does that make sense? So let’s go through the list together. Number one, now remember
this is prioritized, based upon our members saying, this is where I got the most
listings from, in order. Number one was their database, their past clients, and sphere. Now that shouldn’t shock you,
my question for you is this. What is the frequency of communication with every single person in your database and all of your listing leads? How often? What do you send? What channels do you send it in? Email, phone call, text, video, face to face, handwritten
note, smoke signals? What is the frequency of communication? How often do you do it? And what mediums are you using, in a 2018 environment, where
more people could be looking at this, than getting that
direct mail piece in the mail? So we want to make sure
that with your database, you know your customer, and, you’re optimizing email for sure, video absolutely, giving
them the information they need so they’re well
informed to make good decisions. Many of our coaches today
are asking their clients, and we’re seeing tremendous
success from this, both last year, and this year, where they go into the
MLS, they take every person in their database, and
they do a quick CMA, that we can just email
to them, giving them a range of valuation,
of equity if you will, in their property, in a simple email. Now, you know once you go
through that list of 100, 200, 500, 1,000, you better
hit save inside the MLS, because you’re gonna do the
same campaign 90 days later. Think about it. First quarter, second
quarter, third quarter. Here’s what’s happening in your market. Just like your stockbroker,
would send you, here’s what’s going on
with your portfolio. Here’s what’s happening with your 401k. I want you to be the knowledge broker. You’re not always saying, have
you had thoughts of selling, and do you know anybody,
you’re not always doing that. You’re just keeping them
informed, and making sure you are top of mind. So that’s an idea for you to consider. Number two, not a shocker
in our world, open houses, specifically mega open houses. Now, for these first
two, there’s a case study at tomferry.com, I strongly
recommend you look at it. Mega open houses, by a
wonderful client, James Suarez, big shout-out to James and his team. They don’t do open houses
the traditional way. Put out two, three signs an hour before, and hope and pray to the real estate gods that someone shows up. No, all the money is made
in marketing and announcing the open house, the
event that you’re doing. They put out, 15, 20, sometimes 30 signs, which we know is important,
because people walk in saying, my goodness, I see your
signs everywhere, and, that’s a good thing. They in many cases will
have food, a taco truck, you know, something, know your
customer, know your budget, know your price range,
it makes sense for you. It could be a bag of chips, I don’t know, but they give people a reason to show up. They give people a reason
to show up, more than just, hey, come look at this listing. And, they spend their entire
time while they’re there meeting with neighbors,
because you invited all them. Meeting with your past clients in sphere, because you invited all them. All of your buyer prospects,
you’ve got in that, you know, longterm buyer followup campaign,
you’re inviting all them, and basically blanketing
your zip code, on Facebook, and Instagram, you’ll see all
of this in the case study. But here’s the point, my friends. They’re going all in on this,
and it represents hundreds of thousands of dollars
in listings commissions from this one source alone. Number three, geographic farms. Now, old school, but made more modern. We know, the basic thought
behind a geographic farm is to identify 500, 1,000, 250 homes, where the annual turnover
justifies and rationalizes a large enough return
on investment, R.O.I., for your direct mail, for
your marketing efforts, for your Facebook ads to
overlay that marketplace, so you become the obvious choice. Now, everybody’s got a friend
in the business, right? We all know that deal, but
we want you to be that one that stands out, I’m
calling Ginger, right? I’m calling Richard, right? You know, she’s the one, he’s the one. Why? Because you’ve inundated
them with direct mail, with Facebook ads, with
open houses, and you become the mayor of that community. We know today, we have
clients that have 500 homes in a farm, 5,000 homes in a farm, 50,000 properties that they’re farming, 80,000 properties that they’re farming, and they’re getting huge
returns on their investment. Of the top three, are
you dabbling in those, or are you obsessively committed to those? Think about it. That’s just the top
three of our core four. Number four on the list is
agent-to-agent referrals. Yes, agent to agent
referrals, especially amongst our network, where everybody’s
in the ecosystem connecting and brainstorming, and idea sharing, and all of a sudden, if you go to, is it census.org? Census.gov, we should just put a link up, because I’m totally screwing that up, you’re gonna see that,
I want you to go there, play around, and here’s what
you’re going to discover. Let’s say you’re in, Texas, right. (snaps fingers) You’re in Austin. And you say, huh, where are
people moving to and from when they come from Austin? Well no surprise, they’re
coming from Arizona, they’re coming from Las
Vegas, they’re coming from southern California, they’re coming from the San Francisco Bay
area, looking for that same tech culture and vibe,
and it actually shows you the number of people that are working, and what the smart agents are doing, is they’re creating
networking relationships with agents in all of those communities, so they can be on the
receiving and the sending end of those agent-to-agent referrals. Fascinating, huh? Well let’s look at number five. Easy one, ZRT, Zillow, Realtor, Trulia, you know, homes.com, and all
of those, and guess what? We know that a percentage of
the people there are like, I want to look at that
house, need to sell one, before they buy the next one. And the savviest of agents,
you, are paying attention, asking the right questions,
you guys need to sell before you buy, have you
met with other agents, can I help you there, can
I refer you to somebody if it’s out of my market,
or can I serve you myself? So, the agents that have
over-indexed on online, you know, arbitrage, buying
leads, have really seen this as a significant listing opportunity, and I hope you are too. Number six, expired listings. Now remember we have clients
all over the U.S., Canada, Mexico, Europe, Australia,
so this is clearly a very U.S.-specific one, but we
know today, that a percentage of homes are overpriced,
under-marketed, bad exposure, horrible photography, and
like it or not, they expire. And smart, aggressive agents
with the right service mindset are using direct mail,
phone calls, door knocking, and more, to help that customer
repackage and reposition their home to sell. And let’s face it, is
there a better market, like marketing piece then? This home at 1234 Banana
Street, was on the market, for 327 days, with two different agents, no offer, never sold,
listed and sold by myself and my team, in 27 days, and
got ’em 99% of asking price. And then their Zillow review, below that. It’s the ultimate proof
of success, my friends. Now, this is where I
know some people will go, oh Tom, I don’t, arrrghhh, I don’t like expireds. Okay, fixed mindset,
how’s that working out for your savings account? You’re an unbelievable listing agent. You’re a confident rock star. Stop labeling any lead
source as a bad lead source, and instead, remember that
there’s a human being over there. And you’re a knowledge
broker, you know how to help. Just focus on the human
being, not the source. Make sense? All right, number seven,
specifically focusing on seller online lead generation. We know from the last four
or five years, the phenomenon of, curious about the value
of your home, click here, get an automatic CMA on
the value of your home, yada yada yada. Well, I’ve been talking about this for four or five years now, and, you know, people have landing pages,
they’ve been running Facebook ads low cost per lead, we’re not
talking Google yet, you know, low cost per lead on Facebook, but it takes 18 months, right? After 18 months, you get a 3% conversion. Three out of 100. Some agents couldn’t handle that. The vast majority of our
clients understand longterm lead-nurturing, get ’em into your system, send them stuff of value,
have ’em watch your videos, see your proof of success, right, that you’re watching them
percolate up, as they’re looking at more and more
properties on your website, and guess what? Now, today, three or four years later, it’s the number seven source
for their listings today. Think about that. Are you doing Facebook
ads right now to make sure that 2019 and 2020, you’re
securing those listings? I hope you are. Number eight, sign calls,
another great reason why, when you’re doing
those open houses, to have as many signs as your city allows. Because, you know, if
you’re in New York City, the answer’s none, right, and some towns, some villages around the
world, no signs, or one sign. So, know your market, follow the rules. But sign calls, excellent source. Number nine, first sale
by owners, fastest source of business opportunity. Whether we like it or not,
as real estate professionals, it’s the DIY marketplace, right? It’s the do-it-yourselfers,
that just, they don’t know any better, they believe. Now, if you remember, I
don’t even know how long ago, a Tom Ferry Show, where
I talk specifically about a committee called Fizber. F-I-Z as in zebra, B-E-R, they wanted to meet with
me, they’re a FSBO company, like a FSBO online portal, I
didn’t want to meet with them, I’m like, you guys are the devil, I don’t want to talk to you. Well guess what, they wiggled
their way into a meeting in my office, and I said,
guys, how can I help? Like, I don’t want to
support for sale by owners, they said, no, here’s the problem. What we’re seeing is, after 61 days, they haven’t sold, (claps hands) they ask for a real estate agent. I said, aha, that I can help you with. So, what do we know? There’s a small percentage
of all the homes in your marketplace that
are for sale by owner. Generally speaking, if you
go to the FSBO case study. It’s three out of 10 people
are real, and of those three that you qualify and preview their home, that’s the whole campaign,
you know what, you’re gonna get one, or you’re gonna get two. But it’s one or two more listings that your sign is up, that you get to post all over the internet. That you’re marketing to
your database and others, and you’re helping another
seller sell their home, and maybe just round tripping the deal, and getting both sides. Remember fixed mindset, growth mindset. Number 10 is investors. Unbelievable opportunity
right now with the, I mean, it’s incomprehensible, how much money is coming into
the marketplace right now, from, you know, soft bank
investing, and, you know, real estate brokerage companies, to, building companies, the amount
of technology companies, but the every day investor. So, two things I want you to do, ready? Little just, project. Why don’t you sit down
with your title rep, give them, him or her a
giant hug and thank them for their service, and then, ask them, could you pull up a report of every person, LLC,
SCorp, LLP, or individual, family, right, you gotta
find ’em different ways, that own three properties,
five properties, 10 properties in our area. You know what you’re going to discover? There’s a whole bunch
of people in your town that own a whole bunch of real estate. And in many cases, they
might just be tired of, toilets and tenants, and
now it’s time for them to do something else. My point to you is this,
whether you’re trying to find the money, or
trying to find the product, both are really good, they’re
already in your marketplace, are you paying attention, right? Have you taken the time to
sit down, to get that list created, and then think
through a campaign, right? Can I knock on their
door, can I send a mailer, you know, consistently,
can I make phone calls, can I get with them face to face, to find out what their plans are? Is it time for them to
take their 10 single family residences, and maybe sell
that and 1031 exchange it into maybe a shopping center. You and I both know, once
they’re in the monopoly game, they’re in the monopoly game. And it’s your job to
identify ’em, work with ’em, bring them significant
and meaningful value, and have them as customers for life. So that was number 10. Number 11, interesting enough,
is working with builders. Same thing, go back to
your title rep, and say, hey, do me a favor, I want you to pull up, now, again, every state’s
gonna be different, every city’s gonna be
different, I’m using kinda, southern California
specific, my marketplace, I would say, pull up every property in the Flower streets of
Corona del Mar, that zoned, like R2, where I can build two
units, but there’s currently only one unit on it. I see people doing this every
day, all over the world, because they’re realizing,
whether you’re talking about micro-housing, which, we
should do an entire show on, bananas, what’s going
on in Seattle, I mean, we know it because you
look at China, Japan, micro-housing, 300 square
foot place, single person, they show up, it’s like
living in a hotel room. It’s bananas. Seattle’s doing it, Oakland’s doing it, San Diego’s doing it, you
gotta pay attention my friends, the world is shifting,
but here’s the deal. I got that little tiny lot,
if I can find the opportunity, the builder’s available,
the money’s available, but think about it like this. If you’re a smart agent, and you are, you’re playing the long game. I’m gonna find all those
properties in my area, that have been owned for 20 plus years, that have this specific
zoning opportunity for growth, because it’s too small, or the
single unit they put on it, and guess what? Knock knock, hi, what are your
plans, if there was a way, would you be interested in partnering? I’ve got a builder, I’ve got the money, there’s all kinds of options. You know, just building
rapport, connecting, bringing value and having
that team behind you, ready to jump when the timing is right, listen, you get paid on the front end, they build two units, three units, you got two, three
listings on the back end, you get paid two, three more times, it’s worth the effort my friends. And that’s why it’s
where it is on the list. There was like, 30. I’m only giving you the top 12. So, last one on the
list, they all matched up exactly the same, so it was,
professional networking, corporate relocation, radio, seminars, and Yelp reviews. All those got mashed up, but
it was significant enough, because it was all the same number, but we just put it into one group. Now, now that you have this list, the $64,000 question for you is, where are you really focused? Where are you dabbling? And what are you avoiding? If I was sitting with
you one on one, I’d say, let’s get ’em all on the
wall, show me your business from 2017, you know, check check check, I got four here, check
check, I got two here, check check, I got two here. None, none, none, none,
none, none, none, one. And I’d say, all right. Now where do we want to concentrate? I’m your coach. Where are you gonna concentrate? If you were placing bets,
you’re playing roulette, where do you want to
place your bets, in 2018 to expand the number of
listings you attract? Now, if you’re doing one
or two, which is probably the norm for the vast majority of people, and that’s okay, let’s add two more. It’s just math, you with me? It’s like, hey Tom, metaphorically, I found this really great fishing
spot, where the fish bite, and I’m like, oh, do
you need fish for food? Yes, it’s actually what we
do, it’s how we survive. How many lines do you have in the water? One. Well what if you put
three lines in the water, the math says, I should be
getting two to three more, every single time, and
that’s the same mindset. But what I don’t want you to do, is say, I’m gonna do all 12,
because then you’ll dabble at every one of them, and
you will not be effective. I want you to pick one or two, if you’re with us, you’re gonna work with
your coach, and say, okay, this is what I need
to do, here’s the plan, I’m gonna look at the stuff
that Tom Ferry and others are providing, so I don’t
have to reinvent the wheel. I know what my budget’s
gonna be, if it’s free, or if it’s, you know, cost. I know the pieces I want to
send, I know the frequency, I know the medium I want to
use, and I want you to have a strategy, with a series of tactics, to earn more listings
from that new source. And then guess what? We finish 2018, you double
the number of listings, I know you’re gonna more
than double your income, and guess what? We go right into 2019,
you go back to the list, or the new one that we publish, and you find one or two more. And you know what happens? You wake up, and all of a
sudden, you’re selling 100, or 200 or 300 homes a year,
and you’re like, you know, that Tom Ferry Show, pretty good stuff. So, I hope you got some
value out of today. Make sure you read the
blog on tomferry.com, take the time to download
some of those case studies, those are examples from our
clients that we know work, they’re using every day,
you’ll see all the numbers and the GCI and everything
that they spend, and how they do it, it’s all there. The goal my friends, is to be in action. That’s my intention here. For you to be in action. Wishing you a great week, a great month, and your best year ever. See you soon. Hey, it’s Coach Tom Ferry. Have you been considering hiring a coach? If so, click the link below,
and check out what we do. (upbeat music)

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